Woolies chief Brad Banducci hails tech revolution for retail

Woolworths CEO Brad Banducci is in New York hearing pitches from technology start-ups.

Woolworths boss Brad Banducci. Picture: John Feder.

Woolworths chief executive Brad Banducci is in New York hearing pitches from technology start-ups that could help to bulk up WooliesX, the supermarket’s new tech hub, as he pinpoints IT as a force about to transform ­retailing.

He said it was still “too early to tell” what Amazon’s impact had been on the nation’s $300 billion retail sector during Christmas.

Mr Banducci was at Microsoft’s flagship store in New York overnight for an event that allowed executives, technology experts and retail professionals to watch presentations from a dozen retail technology entrepreneurs spruiking a host of applications.

The presentation showcased start-ups involved in using social media to drive retail sales, fashion and beauty technology and supermarket shelf IT.

Speaking to The Australian after the event, Mr Banducci said technology was core to Woolworths’ operations as it embraced new ideas and entrepreneurs.

He said it would help to transform the business.

“(Technology) is going to change more about the way we manage the flow of product into the store as much as it will change the customer interface with the store,’’ Mr Banducci said.

“Technology is an important part of retail.

“I think that is what we are all seeing here: technology has become critical to the future of retail.

“We are here just to look at all the good ideas we can use and apply in Australia.’’

The event was part of the National Retail Federation 2018 convention, which has drawn in thousands of retail professionals, companies and start-up firms.

Mr Banducci attended the Microsoft event with Woolworths executive Faye Ilhan, head of e-commerce sales and digital innovation.

Woolworths launched its own tech hub late last year. Called WooliesX, it is loosely based on Walmart’s innovation and technology lab in San Francisco, called WalmartLabs.

Mr Banducci visited WalmartLabs last year while on a study tour and found it reflected his own thinking about a better way to fuse loyalty, online services and the large reservoir of data in Woolworths’ consumer database.

He said WooliesX had fused the once separate business units of loyalty and digital to provide a connected customer experience at the retail chain.

Mr Banducci said he was encountering many good ideas in the tech space in the US.

“The real issue is not whether there are good ideas; it is if they are scalable in a business like ours.’’

Mr Banducci said the types of retail tech applications flowing from the start-up community were of interest to WooliesX.

“WooliesX would take the lead on commercialising the idea but what we are trying to do to is bring our whole team in Woolworths on the digital journey.

“We talk about everyone becoming a truly 21st century retailer but WooliesX becomes the lead to make it happen.”

Turning to Amazon, Mr Banducci said it was too early to judge the online giant’s impact in Australia since launching its Marketplace platform in early December.

“It’s so hard to tell — it’s so early in their onshoring.”

Mr Banducci said he was yet to visit a Whole Foods supermarket on this trip but often visited the chain when in New York. He was a big fan of the Amazon-owned grocery chain, which he described as a “great retailer”.

The reporter travelled to NRF 2018 courtesy of Microsoft.